When a Federal or Postal employee files for, and is approved for, Federal Disability Retirement benefits under FERS or CSRS, the disability retirement annuity which one receives extends back to the “last day of pay” of a Federal or Postal employee. It matters not what “kind” of pay; the Office of Personnel Management merely receives the date of the Federal or Postal employee’s last day of pay from the Agency, then gives back-pay back to that date which the Agency determines that he or she was last paid.

Thus, if a person was on LWOP for a six-month period while awaiting for a decision from OPM on his or her Federal Disability Retirement application, then decided to use up the last couple of hours of Annual or Sick Leave and receive a nominal amount — in that scenario, the back pay would extend only to the payment received for the Annual or Sick Leave, and the Federal or Postal employee would lose any back-pay for the six-month period of LWOP.

With this in mind, it is important to plan — to either remain on LWOP during the entire period of waiting for a decision from OPM, or if one continues to work or to receive payments for Sick or Annual Leave, to make it worth one’s while (i.e., to continue to receive a payment rate equal to what the rate of pay for back-pay would be, which is 60% of the average of one’s highest three consecutive years of salary the first year, then 40% every year thereafter). Just some thoughts.

Seven False Myths about OPM Disability Retirement

1) I have to be totally disabled to get Postal or Federal disability retirement.
False: You are eligible for disability retirement so long as you are unable to perform one or more of the essential elements of your job. Thus, it is a much lower standard of disability.

2) My injury or illness has to be job-related.
False: You can get disability even if your condition is not work related. If your medical condition impacts your ability to perform any of the core elements of your job, you are eligible, regardless of how or where your condition occurred.

3) I have to quit my federal job first to get disability.
False: In most cases, you can apply while continuing to work at your present job, to the extent you are able.

4) I can't get disability if I suffer from a mental or nervous condition.
False: If your condition affects your job performance, you can still qualify. Psychiatric conditions are treated no differently from physical conditions.

5) Disability retirement is approved by DOL Workers Comp.
False: It's the Office of Personnel Management (OPM) the federal agency that administers and approves disability for employees at the US Postal Service or other federal agencies.

6) I can wait for OPM disability retirement for many years after separation.
False: You only have one year from the date of separation from service - otherwise, you lose your right forever.

7) If I get disability retirement, I won't be able to apply for Scheduled Award (SA).
False: You can get a Scheduled Award under the rules of OWCP even after you get approved for OPM disability retirement.